"Given our performance and the difficult economic environment, especially for big-ticket items, we intend to implement a series of actions to reduce on-going expenses, adjust our asset base, and accelerate the transformation of our business model," said CEO Lou D'Ambrosio. "These actions will better enable us to focus our investments on serving our customers and members through integrated retail - at the store, online and in the home."

Management estimates it will recognize $1.6 to $2.4 billion in non-cash charges in the fourth quarter.

The company announces its fourth quarter financial results on February 23.